What Small Business Owners Need to Know
We all hate it when a reputable not-for-profit ends up in the news for all the wrong reasons. Additionally, losing $30k (plus unspecified legal costs) on an employment issue just feels plain wrong! It’s like a speeding ticket – what a waste – good money going to the wrong people. So I thought we could go through the case and take some learnings from it to get a bit more value from their loss. It is a powerful reminder of the importance of fair and lawful employment practices in our businesses.
The Case Overview
An SPCA employee, a vet nurse and kennel coordinator, was awarded $20,000 in compensation and $9,192 in lost wages after being unjustly dismissed. The Employment Relations Authority found that the dismissal was not justified, highlighting several procedural flaws we can explain and avoid going forward. If you want to read more details about the case you can find it on the RNZ site HERE. Let’s go.
Key Issues Identified
- Failure to Administer Treatments: The employee was accused of not administering or recording treatments for animals, including prescribed ear drops for a dog.
- Performance and Conduct Concerns: Incidents over the course of 2023, including underfeeding a foster dog and missing admin tasks, led to disciplinary actions. As an aside, there’s a lesson here too in how long these things take to process – it’s a long and unpleasant thing to have a claim go to court.
- Procedural Fairness: The SPCA did not fully investigate the allegations, and the employee was not given a fair opportunity to respond to the specific issues raised. This is the key.
What we can learn from SPCA’s misfortune
1. Ensure Fair Processes
It’s crucial to follow a fair and transparent process when dealing with employee issues. This includes:
- Clear Communication: Clearly communicate any performance or conduct concerns to the employee.
- Opportunity to Respond: Give employees a fair chance to respond to allegations before making any decisions.
- Consistent Application: Apply your policies consistently to all employees to avoid claims of unfair treatment.
Remember “fair” is a loaded term and does not relate to how anyone feels. It is being able to evidence that what the courts have established as fair has taken place. Doesn’t seem fair, does it? Ethics experts have a field day with this concept, I’m sure.
2. Maintain Detailed Documentation
Proper documentation can protect your business in case of disputes. Ensure you:
- Record Keeping: Keep detailed records of all employment-related decisions, performance reviews, and disciplinary actions.
- Documentation of Meetings: Document all meetings and communications related to employment issues.
If you don’t have written evidence, you are vulnerable to being accused of not having done/said/offered/considered essential things in your disciplinary process. At FixHR we are continuously collecting proof of having followed good, lawful process which reduces risk for our clients, but you can do the same thing. SPCA didn’t and they paid the price for it.
3. Seek Professional Advice
When in doubt, consult with an employment lawyer or HR professional. They can provide guidance on:
- Legal Compliance: Ensuring your actions comply with employment laws.
- Best Practices: Implementing best practices in handling employee issues.
I had to say that. Reach out to us! We know what we are doing. The HR people in SPCA should have reached out to get some more support to process this disciplinary; it need not have ended this way.
4. Foster a Positive Work Environment
Your employees are your greatest asset. Treat them with respect and fairness to foster a positive work environment. This includes:
- Training and Development: Provide ongoing training and development opportunities.
- Open Communication: Encourage open communication and address concerns promptly.
It’s not every case that highlights this, but we must underscore it here. Investing in your people when there is something missing gives you the opportunity to build stronger relationships in your team, increase competencies and avoid a mess like this became for the team at SPCA.
Reviewing this sad case SPCA has been dealing with for years – literally – I hope you can better appreciate the complexities of employment law. It’s not an easy beast, and yet it is enmeshed in any NZ business with staff. Implementing these practical applications should help protect your business and ensure a positive work environment for your employees. That’s often easier said than done! If you need guidance or support in managing your HR processes, don’t hesitate to reach out to us at FixHR. We’re here to help you navigate these challenges and ensure your business is compliant and thriving. Contact us today to see how we can help you create a “fairer” (!) and more lawful workplace.
